USD Subordinated Notes Offer - Pricing

• QBE prices USD300 million of Fixed Rate Resetting Subordinated Notes due 2037
• Notes eligible as Tier 2 Capital under APRA's capital adequacy framework
• Initial fixed interest rate of 5.239% per annum, reset on 10 November 2032

QBE Insurance Group Limited (QBE) has announced the pricing of the issue of USD300 million of Fixed Rate Resetting Subordinated Notes due 2037 (the Subordinated Notes) under its Note Issuance Programme. The Subordinated Notes will be eligible as Tier 2 Capital (as described in the Prudential Standards issued by the Australian Prudential Regulation Authority (APRA)) of QBE under APRA's capital adequacy framework. The Subordinated Notes are required to be converted into ordinary shares in QBE in whole or in part if APRA determines QBE is or would become non-viable. The Subordinated Notes will have a term of 12 years (maturing 10 November 2037) and are callable by QBE, subject to APRA's prior written approval, on the interest payment date falling on or nearest to 10 November 2032 (and if certain tax or regulatory events occur). Investors should not expect that APRA's approval will be given for any early redemption. Interest payable on the Subordinated Notes will initially be at a fixed rate of 5.239% per annum paid semi-annually in arrear up until 10 November 2032. The interest rate will be reset on that date to be the per annum rate equal to the yield to maturity for U.S. Treasury securities with a maturity of five years plus a spread of 1.350% per annum.